FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Petronsky, Inc. is considering the acquisition of a private German firm. The earnings of the German firm are C1o,000,0oo, and the average P/E ratio of

image text in transcribed

Petronsky, Inc. is considering the acquisition of a private German firm. The earnings of the German firm are C1o,000,0oo, and the average P/E ratio of publicly traded German firms in the same industry is 8 What is an estimate of the private German firm's market valuation? O a. 10,000,000 b. 1,250,000 c. 80,000,000 O d. None of these choices are correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investment Science

Investment Science

Authors: David G. Luenberger

2nd Edition

0199740089, 978-0199740086

More Books

Students also viewed these Finance questions

Question

★★★★★
On May 31, Fournier Company invested $98,000 in U.S. Treasury bills. The bills mature in 120 days at $100,000. Prepare journal entries to record the purchase on May 31; the adjustment to accrue...

Answered: 1 week ago

Question

★★★★★
Berry Company sold goods with a total selling price of $800,000 during the year. It purchased goods for $380,000 and had beginning inventory of $67,000. A count of its ending inventory determined...

Answered: 1 week ago

Question

★★★★★
What is the name of the program?

Answered: 1 week ago

Question

★★★★★
Taos Company's record of transactions concerning part X for the month of April was as follows. Instructions (a) Compute the inventory at April 30 on each of the following bases. Assume that perpetual...

Answered: 1 week ago

Question

★★★★★
Suppose you observe the following situation: a. Calculate the expected return on each stock. (Round your answers to 2 decimal places. (e.g., b. Assuming the capital asset pricing model holds and...

Answered: 1 week ago

Question

★★★★★
I need help For the QRS Corporation, you find the Operating Margin = 0.1 and the Profit Margin = 0. What do the values for these ratios say about the QRS Corporation? Select one: a. The EBIT of the...

Answered: 1 week ago

Question

★★★★★
1. Light of wavelength 686 nm in air enters water, making an angle of 40.4 with the normal. Determine a) the angle of refraction and b) the wavelength of light in water. Explain your working. (The...

Answered: 1 week ago

Question

★★★★★
Q1) Using singularity functions only, determine a- The reactions b- The shear force at x = 2.5 m. c- The bending moment at x = 5.5 m. 1200 N/m A 4m- 6 m- 2800 N/m B

Answered: 1 week ago

Question

★★★★★
Scott is an executive director and Juanita is a fundraising manager at Werner Charities. They are trying to create a more effective letter to secure funding from past and prospective donors. Their...

Answered: 1 week ago

Question

★★★★★
Case Study: https://mitsloan.mit.edu/sites/default/files/2020-03/Nissan%20Motor%20Company%20Ltd.IC_.pdf Instructions: Understand and comprehend the case situation, then kindly help the organization...

Answered: 1 week ago

Question

★★★★★
GTech Eng. Ltd. has won a bid to provide a solution for the heavy equipment and automation system to transmit oil for a High-Price Oil Company which owns a pipeline network used to transmit oil from...

Answered: 1 week ago

Question

★★★★★
Recent research suggests that career plateaus are more complex than previously thought. Briefly explain why an individuals perception of being plateaued is important and how organizations may want to...

Answered: 1 week ago

Question

★★★★★
Explain how both organizations and individuals can benefit from a well designed career management system.

Answered: 1 week ago

Question

★★★★★
Explain why management development is one of the most common HRD activities found in organizations today.

Answered: 1 week ago

Previous Question Next Question